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HMRC internal manual

Construction Industry Scheme Reform Manual

HM Revenue & Customs
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Deductions: checking of deductions where contractor’s monthly return not submitted: Checking deductions where the contractor is insolvent

Contractor has become insolvent

If you establish that the contractor has become insolvent and the contractor’s monthly return(s) has been captured and you can confirm the details the PDS shows you should;

  • allow credit for the deductions in the subcontractor’s SA calculation
  • take no further action.

Contractor insolvent and insufficient information to confirm deductions claimed

If a subcontractor has been given insufficient PDS’s by the contractor you should normally be able to trace the contractor’s Employer Reference from other monthly return details for the same contractor already captured on the subcontractor’s record.

If the contractor has not given the subcontractor any PDS’s, it is likely the subcontractor will be unable to provide the contractor’s Employer Reference. Therefore you should obtain as much information as you can from the subcontractor to help you trace the contractor’s Employer Reference through normal search facilities.

Once you have this information then proceed as set out in CISR74030